Tesla Motors Inc (NASDAQ:TSLA) has raised $1 billion in new capital after selling more shares in the company. Tesla plans to use the new capital to pay off a $452.4 million federal loan. After that, the company will have around $678.8 million in cash and cash equivalents with long term debt of $600 million, according to a company filing.
Tesla also has plans to use the cash to develop a Model X SUV vehicle, which was delayed until the end of next year. The Model X reported will cost around $200 million to develop. Fortunately the Model X uses similar hardware and technology that went into the Model S vehicle. Tesla Motors CEO Elon Musk (pictured above) also plans to launch a new affordable sedan within the next few years.
Tesla is also going to use some of the cash to expand their vehicle distribution outside of North America as they are seeing some demand in Europe and Asia. More service shops, retail stores, and rapid-recharging stations will also be opened up with the new funding.
Tesla Motors has been on a roll lately. The company recently reported their first profitable quarter and they outsold their German counterparts. Last month, the company launched a new financing plan to make purchasing the vehicles more feasible for consumers.